Personal loan overview: September 2021
With spring finally here, now is the time to take stock of the September 2021 personal loan market.
A number of interest rate changes on personal loans have taken place over the past month, along with several other offer changes, such as various application fee waivers.
As noted in last month’s snapshot, there has also been a recent trend around risk-based pricing, with ING adopting the model for its one-time loan option.
According to the latest release of ABS Lending Indicators, there was a whopping 14.2% increase in fixed-term (seasonally adjusted) personal loan commitments in July 2021. This was a significant jump from to May, which recorded a 5.6% increase in new fixed-term loans. personal loans.
The statement also revealed a 2.9% increase in new loan commitments for road vehicles, as well as an incredible 92.8% increase in the value of new loan commitments for personal investment.
Personal loan interest rate changes:
Here’s what’s been happening in terms of personal loan interest rates and supply changes lately:
Lower interest rates:
- The Australian Military Bank reduced the variable starting rate by 50 basis points for applicants with excellent credit on its car loan, bringing it down to 3.99% per annum (comparison rate of 4.86% per year). year*).
- Community First Credit Union has dropped variable rates on two of its loan options. Its home improvement loan and green loan are now at 3.99% per annum (comparison rate of 4.99% per annum *).
- Easy Street reduced its unsecured fixed rate personal loan by 100 basis points, bringing it down to 7.99% pa (8.26% pa benchmark *).
- Illawarra Credit Union cut its unsecured green personal loan rate by 200 basis points and its green auto loan package by 26 basis points, bringing both rates down to 3.99% per annum (comparison rate of 5.15 % per year*).
- QBANK withdrew 114 basis points from its variable rate auto loan, which now stands at 4.85% per annum (comparison rate of 5.48% per annum *).
- Commonwealth Bank waives $ 250 application fee on unsecured personal loan until September 7, 2021
Increase in interest rates:
- Plenti increased the fixed and variable rates on its unsecured personal loan for applicants with excellent credit by 95 basis points, bringing them to 6.39% per annum (comparison rate of 6.39% per annum *).
Which lenders stand out?
Again, the lenders offering the lowest personal loan interest rates in the Mozo database are Harmoney, Credit Union SA, and Transport Mutual Credit Union, with the addition of Community First Credit Union after its recent round of interest rate changes.
This proves once again that small banks and credit unions are the place to go if you want competitive rates.
What about reputable lenders?
While there have been several changes in the interest rates on personal loans from major banks over the past few months, be aware that major bank rates tend to be much higher than most competing lenders.
For example, at present, the interest rate for Commonwealth Bank unsecured variable personal loans is just under 12% – a noticeable difference from the lower base interest rate. Mozo data, which stands at 3.99% pa
Big 4 variable rate personal loans:
Currently, the lowest variable rate personal loan from large banks in the Mozo database is the NAB (Variable, Unsecured) personal loan, at 6.99% per annum (compare rate of 7.91 % per year*).
The highest variable rate personal loan from the major banks in the Mozo database, on the other hand, is the Commonwealth Bank Unsecured Variable Personal Loan at 11.50% per annum (comparison rate of 12.38% per year). year*).
Big 4 fixed rate personal loans:
When it comes to fixed rate personal loans, the big bank with the lowest fixed rate in the Mozo database is NAB with its Personal Loan (Fixed, Unsecured), which offers a 3 year fixed rate of 6, 99% pa (7.91% pa comparison rate *).
However, the highest fixed rate personal loan from large banks in the Mozo database is owned by the Commonwealth Bank, along with its unsecured (fixed) personal loan, which has a 3-year fixed rate of 11.50% per year (comparison rate of 12.38% per year *).
Personal loan rate to note in September:
Written by: Rhianna Dews, Personal Loans Writer, September 1, 2021.
^ See information on the Mozo Experts Choice Personal Loan Awards
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